CGST Act 2017 Section 105

The Central Goods and Services Tax Act, 2017 is a comprehensive legislation that governs the levy and collection of GST in India. Section 105 of this Act specifically deals with the procedure for filing appeals against the advance ruling orders passed by the Authority for Advance Ruling (AAR). Understanding this section is crucial for taxpayers seeking clarity on their tax liabilities before actual transactions occur.

The CGST Act provides a structured mechanism to resolve disputes through advance rulings. Section 105 empowers aggrieved parties to appeal to the Appellate Authority for Advance Ruling (AAAR) if they are dissatisfied with the AAR’s decision. This section is vital for businesses, professionals, and GST officials to ensure transparency and legal recourse in GST matters.

Central Goods and Services Tax Act, 2017 Section 105 – Exact Provision

Section 105 provides a clear right to appeal against advance rulings. The appeal must be filed within 30 days of receiving the ruling. The Appellate Authority for Advance Ruling (AAAR) is mandated to decide the appeal within 90 days. This ensures timely resolution and legal certainty for taxpayers.

• Appeal must be filed within 30 days of AAR ruling.

• Appeal is made to the Appellate Authority for Advance Ruling (AAAR).

• AAAR must dispose of appeal within 90 days.

• Only aggrieved persons can file appeal.

• Ensures quick dispute resolution in GST matters.

Explanation of CGST Act Section 105

Section 105 outlines the appellate process for advance rulings under GST. It applies to any person who is dissatisfied with the ruling given by the Authority for Advance Ruling (AAR).

• States the right to appeal against AAR decisions.

• Applies to registered taxpayers, suppliers, recipients, and others who sought advance ruling.

• Appeal must be filed within 30 days from receipt of ruling.

• Triggers when an advance ruling is received and found unsatisfactory.

• Permits legal recourse before the Appellate Authority for Advance Ruling.

• Restricts appeal to only advance ruling matters, not other GST disputes.

Purpose and Rationale of CGST Act Section 105

This section ensures that taxpayers have a formal mechanism to challenge advance rulings they believe are incorrect. It promotes fairness and legal certainty in GST administration.

• Ensures uniformity in indirect tax interpretation.

• Prevents misuse or errors in advance rulings.

• Streamlines dispute resolution before actual tax liability arises.

• Promotes confidence among taxpayers in GST system.

• Supports efficient revenue collection by clarifying tax positions early.

When CGST Act Section 105 Applies

Section 105 applies specifically when a person receives an advance ruling under GST and wishes to challenge it.

• Relevant after issuance of advance ruling by AAR.

• Applies within 30 days of receiving ruling.

• Focuses on intra-state and inter-state supply issues covered in ruling.

• Impacts registered persons and others who sought ruling.

• Does not apply to routine tax assessments or audits.

Tax Treatment and Legal Effect under CGST Act Section 105

The section does not directly levy or collect tax but affects the legal standing of advance rulings. The appeal process can confirm, modify, or overturn rulings, impacting future tax liabilities.

Taxpayers rely on rulings for compliance and tax planning. The AAAR’s decision is binding unless challenged further in courts. This section ensures that the ruling’s legal effect is subject to review, providing a check on AAR decisions.

• Does not impose tax but affects tax liability interpretation.

• Ensures rulings are legally vetted through appeal.

• Influences compliance and tax planning decisions.

Nature of Obligation or Benefit under CGST Act Section 105

Section 105 creates a procedural right to appeal, which is a compliance obligation for aggrieved parties seeking review. It benefits taxpayers by offering a legal remedy.

The appeal is mandatory within the stipulated time to preserve rights. It benefits registered persons, suppliers, and recipients who require clarity on GST matters.

• Creates procedural compliance obligation to file appeal timely.

• Benefits taxpayers by providing dispute resolution.

• Mandatory to appeal within 30 days to avoid waiver.

• Applies to persons aggrieved by advance ruling only.

Stage of GST Process Where Section Applies

This section applies after the advance ruling stage, before tax payment or assessment. It is part of the dispute resolution process in GST.

• Post-advance ruling issuance.

• Before tax payment or return filing based on ruling.

• Does not apply during initial supply or invoicing.

• Precedes assessment, audit, or recovery stages.

• Facilitates legal scrutiny of rulings.

Penalties, Interest, or Consequences under CGST Act Section 105

Section 105 does not prescribe penalties or interest directly. However, failure to file appeal within 30 days results in loss of appellate rights. Non-compliance with the ruling may attract penalties under other GST provisions.

• No direct penalties or interest under this section.

• Delay in appeal filing leads to waiver of rights.

• Non-compliance with final ruling may attract penalties.

• Ensures timely dispute resolution to avoid prolonged uncertainty.

Example of CGST Act Section 105 in Practical Use

Taxpayer X received an advance ruling from the AAR stating that their supply of software services is taxable under GST. Disagreeing with this, Taxpayer X filed an appeal under Section 105 to the AAAR within 30 days. The AAAR reviewed the case and ruled that the supply is exempt, providing relief to Taxpayer X.

• Shows how Section 105 enables challenge of adverse rulings.

• Highlights importance of timely appeal for tax certainty.

Historical Background of CGST Act Section 105

The GST regime was introduced in 2017 to unify indirect taxes. Section 105 was designed to provide a fair appellate mechanism against advance rulings, ensuring transparency and taxpayer confidence.

• Introduced with GST implementation in 2017.

• Intended to streamline dispute resolution.

• Amended periodically to improve timelines and procedures.

Modern Relevance of CGST Act Section 105

In 2026, Section 105 remains vital for digital GST compliance. With e-filing and electronic communication, appeals are processed efficiently, helping businesses resolve disputes quickly.

• Supports digital filing of appeals via GSTN portal.

• Ensures policy relevance in evolving GST framework.

• Facilitates practical dispute resolution for businesses.

Related Sections

• CGST Act, 2017 Section 7 – Scope of supply.

• CGST Act, 2017 Section 9 – Levy and collection of tax.

• CGST Act, 2017 Section 98 – Advance ruling.

• CGST Act, 2017 Section 99 – Authority for Advance Ruling.

• CGST Act, 2017 Section 100 – Procedure for advance ruling.

• CGST Act, 2017 Section 106 – Appeal to High Court.

Case References under CGST Act Section 105

No landmark case directly interprets this section as of 2026.

Key Facts Summary for CGST Act Section 105

• Section: 105

• Title: Appeal to Appellate Authority for Advance Ruling

• Category: Procedure, Appeal

• Applies To: Persons aggrieved by advance ruling

• Tax Impact: Affects legal validity of advance ruling

• Compliance Requirement: File appeal within 30 days

• Related Forms/Returns: Appeal application to AAAR

Conclusion on CGST Act Section 105

Section 105 of the CGST Act, 2017 plays a crucial role in the GST dispute resolution framework. It provides taxpayers a clear and timely avenue to challenge advance rulings that may adversely affect their tax liabilities. This procedural right enhances transparency and fairness in GST administration.

By mandating a 30-day appeal window and a 90-day disposal timeline, the section ensures disputes are resolved quickly. Taxpayers and GST officers alike benefit from this clarity, which promotes compliance and reduces litigation. Understanding Section 105 is essential for anyone engaging with advance rulings under GST.

FAQs on CGST Act Section 105

Who can file an appeal under Section 105?

Any person aggrieved by an advance ruling under Section 98 can file an appeal to the Appellate Authority for Advance Ruling within 30 days of receiving the ruling.

What is the time limit to file an appeal under Section 105?

The appeal must be filed within thirty days from the date of receipt of the advance ruling. Missing this deadline may result in losing the right to appeal.

What authority hears the appeal under Section 105?

The Appellate Authority for Advance Ruling (AAAR) hears and disposes of appeals filed under Section 105 within ninety days of receipt.

Does Section 105 impose any penalties?

No, Section 105 itself does not impose penalties but failure to file an appeal timely may cause loss of appellate rights, and non-compliance with rulings may attract penalties under other provisions.

Can the AAAR’s decision be further challenged?

Yes, decisions of the AAAR can be challenged before the High Court under Section 106 of the CGST Act, 2017.